Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paulis Kennel uses tenant - days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant

Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 35.30
Wages and salaries $ 2,500 $ 5.90
Food and supplies 40013.80
Facility expenses 8,9003.40
Administrative expenses 7,8000.40
Total expenses $ 19,600 $ 23.50
Actual results for February:
Revenue $ 85,654
Wages and salaries $ 16,992
Food and supplies $ 33,084
Facility expenses $ 16,682
Administrative expenses $ 8,732
The net operating income in the flexible budget for February would be closest to:
Multiple Choice
$9,900
$10,083
$9,664
$10,246

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

3rd edition

978-1119234173, 1119234174, 1119343615, 978-1119182078, 1119182077, 978-1119234074, 1119234077, 978-1119343615

More Books

Students also viewed these Accounting questions

Question

Identify all kinds of sport properties that can be sponsored.

Answered: 1 week ago

Question

Highlight the main principles of sponsorship evaluation.

Answered: 1 week ago

Question

Identify the five main tactics in preventing ambush marketing.

Answered: 1 week ago